Board of Trade, UTCC urge end to rallies, warn of economic cost to Kingdom

Responding to Monday’s calls by anti-amnesty campaigners for action including a mass strike later this week and the withholding of tax payments by businesses, both institutions said yesterday the private sector disagreed with such moves as they would only hamper the Kingdom’s economic growth. 

The UTCC said prolonged political conflict would cause Thailand’s economic growth projection to fall from 3.5 per cent to 3-3.2 per cent. 

UTCC chairman Isara Vongkusolkij expressed concern about the impact of serious political turmoil on the country’s growth, saying it could cause a drop in the number of tourists and destroy investor confidence. 

“The private sector disagrees with civil disobedience, as it is not the right action. Business will continue to pay tax as it is our responsibility and will not announce any days off for employees, as firms need to run as normal,” Isara said. 

The BoT and the UTCC called on all parties to negotiate for the benefit of the country. The organisations stressed three key efforts that needed to be made: steps to end corruption; avoiding confrontations that could lead to disaster and affect the country’s growth; and an attempt by every party to unite and restore peace to the country. 

Yutthachai Soonthron-rattanavate, president of Domestic Travel, said he was worried about the situation. Stopping work meant doubts would be created, impacting economic activities. At this uncertain time, the country needed to drive the economy forward and keep it dynamic to improve the climate for investors and boost their confidence.

Thanavath Phonvichai, director of the UTCC’s Economic and Business Forecasting Centre, said if the political strife lasts into the first quarter of next year, Thailand would lose income from the tourism sector amounting to Bt30 billion to Bt50 billion. Economic growth next year would be only 4-4.8 per cent, down from a previous projection of between 5-5.1 per cent.

Economic growth this year could also drop to just 3-3.2 per cent if more problems occurred this year, Thanavath said. The UTCC forecasts the economy this year will grow by only 3.3 per cent if protests continue, down from 3.5 per cent in previous projections. 

Deputy Finance Minister Benja Louicharoen said a thorough ministry inspection into tax collection would be conducted in response to senior Democrat Party member Suthep Thaugsuban’s call for tax non-payment. She shrugged off the call, saying that paying tax was a civil duty and a thorough inspection would easily detect and prevent tax evasion.

She said the political instability had not affected the Revenue Department’s ability to collect taxes, adding that collection in October, the first month in the 2014 fiscal year, was above the targeted amount. 

Her fellow Deputy Finance Minister Tanusak Lekuthai said Suthep’s call was prompted largely by emotion and should not be taken seriously. Tanusak thought rally-goers, as educated, middle-class people, would not heed the call.

Transport Minister Chadchart Sittipunt said ministry officials or state-enterprise employees were free to express their opinions or take part in political rallies outside of working hours, but their duties and public service must continue.